Mining entrepreneur Robert Friedland has entered into a partnership with Cordoba Minerals (TSXV: CDB) in the hope of finding the next Oyu Tolgoi.
Paul Harris18 May 201517:22
Secondary copper mineralisation (azurite and malachite) in exposures at artisanal workings
Friedland’s private vehicle High Power Exploration (HPX) will make a strategic investment in CDB and form a joint venture to earn up to a 65% interest in that company’s San Matias copper-gold project in Cordoba, Colombia, by funding it through to feasibility study.
The San Matias project contains several known areas of porphyry copper-gold mineralisation, copper-gold replacement or skarn-style and vein-hosted, gold-copper mineralisation in a part of Colombia where there are already large openpit nickel and coal mines. Recent drilling at San Matias returned high-grade copper and gold intersections including 101m of 1% copper and 0.65 g/t gold.
"We had a lot of interest from some large mining companies and received multiple offers. We went with Robert Friedland because he has a worldwide reputation for finding big [mineral] deposits like Voisey’s Bay and Oyu Tolgoi," CDB president and CEO Mario Stifano told Mining Journal.
"HPX is pleased to be able to gain an interest in what we consider is one of South America’s best copper-gold exploration projects," said Mark Gibson, HPX’s CEO.
In addition to cash, HPX will use its proprietary high-powered induced polarisation geophysics technology to the project that can take readings up to 2km deep.
Under the terms of the deal, HPX will take an initial 11% stake in Cordoba and fund an initial C$2.5 million of exploration work over 18 months. It can then earn up to a 51% interest in CDB’s subsidiary Minerales Cordoba that holds San Matias by spending an additional C$16.5 million on exploration. It can increase this to 65% by funding a NI 43-101 compliant feasibility study.
"They are looking for the big one and we are pretty confident that it is there. The funding commitment through to feasibility study is important as it will cost at least US$50 million to do this for a porphyry deposit," said Stifano.
The entrance of Friedland into Colombia will be a boost to the country whose reputation has suffered in recent years due to the perceived difficulty in advancing exploration projects and obtaining permits.
"This is a large vote of confidence in Colombia. Robert did a lot of due diligence, not just in the project but in the country as a whole, and including speaking with the mining minister to get comfortable that Colombia is the next frontier for mineral exploration and production," said Stifano.